EDEXCEL GCSE BUSINESS · PAPER 2
Exam Practice: Business Operations
Business operations · Making operational decisions · Lesson 1 of 4 · 12 marks · 20 minutes
Name Date
Answer all questions. Use the context of the business in the question where one is given.
Question 1 DEFINE [1 mark]
Define the term 'batch production'.
Question 2 OUTLINE [2 marks]
Outline one disadvantage of flow production.
Question 3 EXPLAIN [3 marks]
Explain one impact on a business of introducing automated machinery into its production.
Question 4 ANALYSE [6 marks]
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SOURCE Oak & Grain Ltd makes wooden dining tables using job production. Each table is made to the customer's exact size and choice of wood by skilled carpenters, taking about two weeks. Its tables sell for £1,500 each. A large furniture retailer has asked Oak & Grain to supply 2,000 identical tables a year at £400 each. |
Analyse the impact on Oak & Grain Ltd of changing from job production to flow production to meet the retailer's order.
Answers
Check your answer only once you have written one.
Question 1 [1 mark]
Making a group of identical products together before switching to make a different group.
▸ Groups of identical products made together 1 mark
Question 2 [2 marks]
It is inflexible (1), so it is difficult and expensive to change the product to meet different customer needs (1).
▸ A disadvantage identified, e.g. inflexible / high set-up cost / repetitive work 1 mark
▸ Developed 1 mark
Question 3 [3 marks]
Productivity would increase (1). Machines can work faster than people and without breaks (1). This means more is produced for the same cost, so the cost per unit falls and the business could lower prices or increase profit (1).
▸ An impact identified, e.g. higher productivity / lower unit cost / consistent quality / high set-up cost 1 mark
▸ First linked point of explanation 1 mark
▸ Second linked point of explanation 1 mark
Question 4 [6 marks]
Flow production would let Oak & Grain make 2,000 identical tables far more quickly, using machines to cut and assemble each one. The cost per table would fall sharply, which is essential because the retailer will only pay £400, compared with £1,500 for a made-to-order table. This could greatly increase its total revenue. However, setting up a production line would be very expensive, and Oak & Grain's skilled carpenters may not be needed, or may leave. It would also lose flexibility: it could no longer make each table to the customer's size and wood choice, which is its current unique selling point. This means it risks losing its existing premium customers while depending heavily on one large retailer.
▸ AO2 (Application, 3 marks): uses the context - made-to-order tables, £1,500 vs £400, 2,000 tables, skilled carpenters Level 1-3
▸ AO3a (Analysis, 3 marks): chains of reasoning about costs, output and flexibility Level 1-3